Sterling Heights Council approves new pact with workers

The Sterling Heights City Council has unanimously approved a new working agreement with employees calling for a wage freeze for the next three years and 15 percent less for any new employees working in city hall, police headquarters, public library and the parks and recreation department.

City Manager Mark A. Vanderpool said the contract is effective from July 1 until June 30, 2016.

The new medical coverage is being changed from Blue Cross Blue Shield Community Blue to BCBS Community Blue PPO 4 that includes a modified 10 percent premium sharing, increased deductibles and co-pays and $15/$30/$50 prescription drug plan.

The new plan reduces the city’s cost to below the state mandated hard cap, Vanderpool said.

Members of UAW Unit 40 of Local 412 Professional and Technical Employees will continue having four unpaid furlough days and four unpaid holidays. The city’s annual contribution to the deferred compensation account has been eliminated resulting in a reduction from $800 to $0.

Vanderpool also said the city retains the right to lay off members under the terms and conditions of the new collective bargaining agreement. The city may hire part-time employees provided the ratio of full-time to part-time employees does not fall below 55 percent/45 percent.

Vanderpool said the gains in reducing worker wages and benefits are part of a proactive financial plan implemented by City Council five years ago. Vanderpool said the city has cut $33 million from its budget by using innovative ideas such as service sharing with nearby communities and consolidation of services.

Employees in the defined benefit pension benefits plan will contribute eight percent to the general employees’ retirement system instead of the five percent that was required under the former contract. Employees will have their vacation, personal and time reduced.

Vanderpool said other measures that have saved the city money over the past five years include:

• Enacted various pension reform measures including reducing pensions for all employees and eliminating the DROP program for public safety employees ($1.2 million)

The city also has been able to maintain one of the lowest tax rates in Michigan with 90 percent of all cities having a higher tax rate.

The city’s reduction program has preserved its AA+ bond rating.

The city also has enhanced economic development efforts to sustain and grow the property tax base long term, according to finance Director Brian Baker. More than $1.2 billion in new corporate investments have occurred in the community the past two years, Baker said